No grants to buy greener cars

08 June 2006

Grants wouldn't reduce emissions, says DfT
Euro Commission had approved grant schemes
Money to be used in ad campaign instead

No Government grants for greener cars like the Prius

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The Government has turned its back on cash grants for motorists buying greener cars.

Although a raft of new grant schemes were given the green light by the European Commission recently, the Department for Transport has decided not press ahead with any of the plans.

Motorists stood to get between £300 and £1000 in grants for petrol, diesel and hybrid cars with low carbon dioxide emissions under one proposal put forward by the DfT.

In a written statement to the House of Commons, transport minister Stephen Ladyman said he was unconvinced that grants would deliver significant reductions in emissions: 'It is clear that the level and number of grants available would not be sufficient to kick-start market transformation.

'The Low Carbon Car programme could only provide grants for 8500 low carbon cars a year - only 0.4% of the new car market - and sales of low carbon cars have been sustained despite the absence of grants for 18 months.'

Money will instead be invested in advertising campaigns, training for commercial vehicle drivers and to encourage businesses to consider how their employees get to work.

The Society of Motor Manufacturers and Traders said it was stunned by the Government's reversal, chief executive Christopher Macgowan saying: 'This sends completely the wrong message to consumers and the industry at a time when the Government claims to be taking a lead on lowering carbon dioxide emissions.

In a recent survey by the SMMT, 36% of motorists said grants would be the most important factor in encouraging them into a greener car. A whatcar.com poll also shows 92% of readers think the Government should stump up some money for cars with lower carbon dioxide emissions.

The schemes sent to the European Commission for approval were worth around £25 million in total. They would have replaced the Powershift programme which gave grants for converting cars to run on LPG but was axed by the DfT in March 2005.